The Jewel Box purchases jewellery from around the world and sells to local retailers in Canada. Consider the following perpetual system merchandising transactions of The Jewel Box Use a separate account for each receivable and payable, for example, record the purchase on August 1 in Accounts Payable Luu Company Aut. Purchased necklaces from Luu Company for $3,500 under credit terms of 1/10, n/30, FOB destination 4 At Low Company's request, paid $300 for freight charges on the August 1 purchase, reducing the amount owed to com 5 Sold rings to Green Ruby for $3,500 under credit terms of 2/10, 1/60, FOB destination. The merchandise had cost $2,220 Purchased bracelets from Jane Co. for $4,700 under credit terms of 1/10, 1/45, FOB shipping point. 9 Paid $275 shipping charges related to the August 5 sale to Green Huby. 10 Green Ruby returned the rings purchased from the August 5 sale that had cost $390 and been sold for $750. The merchandise was restored to inventory. 12 After negotiations with Jane Co. concerning problems with the merchandise purchased on August 8, received a credit from June granting price reduction of $300. 15 Received balance due from Green Ruby for the August 5 sale. 17 Purchased office equipment from West Coon credit, $5,500, n/45. 18 Paid the amount due Jane Co. for the August 8 purchase 19 Sold earrings to Chic Jewellery for $2,550 under credit terms of 2/10, n/30, FOB shipping point. The merchandise bad cost $1,140 22 Chic Jewellery requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sent Chic Jewellery credit sem for $300 to resolve the issue 29 Received Chic Jewellery's payment of the amount due from the August 19 purchase. 30 Paid Luu Company the amount due from the August I purchase. Prepare General Journal entries to record the above transactions, Record the payment to vendor for credit transaction. Note: Enter debits before credits. Date General Journal Debit Credit Aug 30 Accounts payable-Luu Company Cash Record entry Clear entry View general jou system merchandising transactions of the Jewel Box Use a separate account for each receivable and payable; for example, record the purchase on August 1 in Accounts Payable-Luu Company Aug. 1 Purchased necklaces from Luu Company for $3,500 under credit terms of 1/10, n/30, FOB destination 4 At Luu Company's request, paid $300 for freight charges on the August 1 purchase, reducing the amount owed to tou. 5 Sold rings to Green Ruby for $3,500 under credit terms of 2/10, 1/60, FOB destination. The merchandise had cost $2,220. 8 Purchased bracelets from Jane Co. for $4,700 under credit terus of 1/10, 1/45, FOB shipping point. 9 Paid $275 shipping charges related to the August 5 sale to Green Ruby. 10 Green Ruby returned the rings purchased from the August 5 sale that had cost $390 and been sold for $750. The merchandise was restored to inventory. 12 After negotiations with Jane Co. concerning problens with the merchandise purchased on August 8, received a credit se from Jane granting a price reduction of $300. 15 Received balance due from Green Ruby for the August 5 sale. 17 Purchased office equipment from Westco on credit, $5,500, n/45. 18 Paid the amount due Jane Co. for the August 8 purchase 19 Sold earrings to Chic Jewellery for $2,550 under credit terms of 2/10, n/30, FOB shipping point. The merchandise had cost $1,140 22 Chic Jewellery requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sent Chic Jewellery a credit memo for $300 to resolve the issue. 29 Received Chic Jewellery's payment of the amount due from the August 19 purchase. 30 Paid Luu Company the amount due from the August 1 purchase. Prepare General Journal entries to record the above transactions
